4. Acquisitions and dispositions
On 30 June 2003, the Group acquired Guarantee Reserve Life Insurance Company for CHF 165 million. On 31 October 2003, the Group purchased the stock of Zurich Life Assurance Company Ltd., which has been renamed Reassure UK Life Assurance Company Ltd., for CHF 354 million. These acquisitions are administrative reinsurance (Admin ReSM) transactions. Admin ReSM is the purchase of closed blocks of in-force business and can be achieved through either a stock purchase or reinsurance.
As of 11 August 2003, the Group increased its equity-accounted participation in the credit insurer Gerling NCM Credit and Finance AG, which has been renamed Atradius, from 25% to 47.5%. In addition, Sociedad Unipersonal (SCO) purchased an option from Swiss Re to acquire an additional 7.94% of the shareholding in Atradius for EUR 52 million. Under this agreement, SCO took over part of Swiss Re’s commitment to purchase subordinated notes from Atradius.
Goodwill
During the years ended 31 December 2002 and 2003, goodwill of CHF 350 million and CHF 315 million, respectively, was amortised.
As of 31 December 2002 and 2003, the balance of accumulated goodwill amortisation was
CHF 1 131 million and CHF 1 378 million, respectively.
The Group systematically amortises goodwill over periods up to 20 years depending on specific factors. The amount charged in any one year can vary due to foreign exchange and other factors. Despite this, goodwill is amortised within the originally determined periods.
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